GSP GROUP(SH:605088) ZHONGTAI SECURITIES·2025-04-05 04:20Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected relative performance increase of 5% to 15% over the next 6 to 12 months compared to the benchmark index [3][13]. Core Views - The company achieved a revenue of 4,020 million yuan in 2024, representing a year-on-year growth of 26%. The net profit attributable to the parent company was 298 million yuan, with a year-on-year increase of 5% [4][6]. - The company is actively advancing its solid-state battery business, having established a research institute in collaboration with Dongchi to enhance R&D and industrialization efforts [8][9]. - The company’s revenue growth is robust across various regions, with North America showing a significant increase of 42% year-on-year [6]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 4,020 million yuan, with a growth rate of 26% year-on-year. The net profit was 298 million yuan, reflecting a 5% increase [4][6]. - The company’s gross margin for 2024 was 25.51%, a decrease of 0.70 percentage points compared to the previous year, primarily due to the impact of lower-margin products [7]. Revenue Breakdown - Revenue by region in 2024: Europe 1,470 million yuan (+14% YoY), North America 910 million yuan (+42% YoY), Asia and Africa 710 million yuan (+13% YoY), domestic 600 million yuan (+78% YoY), South America 320 million yuan (+19% YoY) [6]. - Revenue by product in 2024: Drive shafts 1,480 million yuan (+23% YoY), constant velocity joints 580 million yuan (+9% YoY), wheel hub bearings 660 million yuan (+27% YoY), rubber dampers 390 million yuan (+23% YoY), corner modules 420 million yuan (+40% YoY), and other revenues 480 million yuan (+66% YoY) [6]. Profitability and Cost Analysis - The company incurred sales, management, and R&D expenses totaling 601 million yuan in 2024, a year-on-year increase of 26.46% [7]. - Financial expenses increased to 1.23 million yuan, primarily due to higher convertible bond interest expenses and reduced exchange gains [7]. Future Outlook - The company forecasts net profits of 381 million yuan, 475 million yuan, and 582 million yuan for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 16, 13, and 11 [9][11]. - The report emphasizes the importance of monitoring the industrialization progress of the solid-state battery business, which could provide significant growth potential [9].